Hong Kong News

Nonpartisan, Noncommercial, unconstrained.
Thursday, Jun 01, 2023

Not enough consultation on plan to tighten Hong Kong crowdfunding rules, groups say

Not enough consultation on plan to tighten Hong Kong crowdfunding rules, groups say

Those relying on donations worry proposed rules will put off donors, threaten their survival.

Hong Kong’s financial authorities have been accused of downplaying the public consultation over a contentious plan to regulate crowdfunding, with some concern groups warning that the proposed rules threatened their survival.

The controversy is over a proposal unveiled last December by the Financial Services and Treasury Bureau that would require anyone planning to collect donations from individuals and others – online or offline – to apply to a new Crowdfunding Affairs Office for approval to proceed.

Law enforcement agencies will be empowered to ban or stop any unapproved or illegal crowdfunding activity and prosecute not only the organisers but also those who donate.

Under the proposal, those raising funds above a specific amount must ask donors to contribute in their real name.


Several concern groups representing patients with various medical conditions joined non-governmental organisations and the city’s leading opposition party in accusing the bureau of making only a limited effort to engage the public on the proposed new rules.

They also demanded an extension to the three-month consultation exercise, which ended on March 20.

The proposal followed high-profile crackdowns on crowdfunding initiatives to support those charged over their roles in the 2019 anti-government protests. One of them, the 612 Humanitarian Relief Fund, offered more than HK$243 million (US$31 million) it raised in donations to individuals facing criminal prosecution or financial strain in the wake of the unrest.

Under the 25-page proposal, those planning a crowdfunding campaign must provide their personal data and information about the local bank account to be used for the drive and the beneficiaries. They must also pledge that the drive will not involve any activity that jeopardises national security.

The Concern Group on Crowdfunding Regulations, a new alliance set up last month by five patient groups and fundraising platforms, warned that the proposals – which also broadly cover day-to-day fundraising drives – would trigger enormous administration costs, discourage donations and even affect their survival.

“Nearly half of our donors are anonymous. It is very difficult for us to trace their identities and we also fear it will affect their desire to donate if they are required to provide their real names,” said Lam Yung-ki, organising officer of the Hong Kong Neuro-Muscular Disease Association.

Members of the now-defunct 612 Humanitarian Relief Fund. (From left) Margaret Ng Ngoi-yee, Cardinal Joseph Zen Ze-kiun, Hui Po-keung and Cyd Ho Sau-lan.


Under the proposal, those raising funds above a specific amount must ask donors to contribute in their real name.

Lam questioned the need for an extra layer of regulation when current fundraising activities on the street or through banquets were already overseen by the Social Welfare Department.

With several fundraising activities put on hold during the Covid-19 pandemic, he warned the proposed changes could deal a blow to the group’s operations, affecting about 40 per cent of its income, or tens of thousands of Hong Kong dollars.

The alliance also highlighted that fundraising efforts had an element of “randomness”, with people encouraged to donate any time, any way they preferred.

The groups feared their fundraising activities would be deemed illegal if they failed to declare every drive, and their good intentions in doing charitable work could, ironically, land them in jail.

Lam said the government had not held any town hall meeting or publicised the consultation, and did not invite charitable organisations to offer their views.

He called for a meeting with the bureau and urged it to hold a public hearing to gauge residents’ views accurately.

The Society for Community Organisation (SoCO), a non-governmental and human rights advocacy group, had similar concerns and lamented the absence of in-depth discussions on the plan to control crowdfunding.

Deputy director Sze Lai-shan argued there was a need for the government to hold more dialogues in directly addressing their concerns.

The Democratic Party said it had tried in vain several times to arrange a meeting with the government.

“With so many issues yet to be clarified, we believe the consultation exercise should be lengthened by at least three more months for more engagement and discussion,” it said.

In a submission sent to the government, the party warned that the “disproportionate” proposed rules would be difficult to implement in real life.

Residents had been helping each other in the community by raising funds for, among other things, urgent medical treatment, defending animal rights or offering a helping hand to workers and colleagues, it said.

“These issues could have been resolved by residents on their own, but now they can only get started with government’s approval,” the party said. “Such an arrangement is not only disturbing and a waste of time, but also disrupts the operation of civil society and discourages residents from caring for the city.”

A spokeswoman for the Financial Services and Treasury Bureau said it received 60 written submissions during the consultation period, including from crowdfunding platforms, charity organisations, professional groups, political groups and members of the public.

Asked to elaborate on its efforts, she said the government collected views from different sectors “expressed at various public occasions”.

“We are now considering and analysing the comments collected, and do not have plans to publish these individual submissions and views,” she said.

The administration would consider “valid concerns and useful suggestions” in drawing up the legislative proposal, she added.

The bureau did not address inquiries on what the government had done to promote the consultation exercise or its cost.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

Hong Kong News
Close
0:00
0:00
America's Got Talent…
Elon Musk has been showered with praise by the Chinese public during his trip to China
Nvidia Joins Tech Giants as First Chipmaker to Reach $1 Trillion Valuation
Drone Attack on Moscow's Wealthiest Neighborhoods Suspected to be Launched by Ukraine
Elon Musk Meets Chinese Finance Minister in Beijing
AI ‘extinction’ should be same priority as nuclear war – experts
Chinese fighter jet buzzes U.S. Air Force spy plane over South China Sea
Prominent Hacker Forum RaidForums Suffers Substantial Data Breach
Nvidia CEO Huang says firms, individuals without AI expertise will be left behind
WPP Revolutionizes Advertising with NVIDIA's AI Powerhouse
Two US Employees Fired For Chasing Robbers Out Of Store As They Broke ''Company Policy''
Pfizer, the EU, and disappearing ink - Smoke, Mirrors, and the Billion-Dose Pfizer Vaccine Deal: EU's 'Open Secret
The Sussexes' Royal Rebound: Could Harry and Meghan Markle Return to the UK?
A provocative study suggests: Left-Wing Extremism and its Unsettling Connection to Psychopathy and Narcissism
Neuralink Receives FDA Approval for First-in-Human Clinical Study
Ukrainian Intelligence Official Admits to Assassination Attempts on Putin
WATCH THIS: democracy in Russia is so bad!
Ed Davey: It is possible for a woman to have a penis
Bernard Arnault Loses $11.2 Billion in One Day as Investors Fear Slowdown in US Growth Will Reduce Demand for Luxury Products
Russian’s Wagner Group leader: “I am not a chef, I am a butcher. Russia is in danger of a revolution like in 1917.”
TikTok Sues Montana Over Law Banning the App
Ron DeSantis Jumps Into 2024 Presidential Race, Setting Up Showdown With Trump
Steve Jobs introducing Apple's iPhone, exactly 16 years ago.
Banking Behemoth vs Ex-Boss: The PMorgan-Epstein Entanglement
China overtakes Japan as world's top car exporter
Talks between US House Republicans and President Biden's Democratic administration on raising the federal government's $31.4tn debt ceiling have paused
Biden Administration Eyeing High-Profile Visits to China: The Biden Administration is heating things up by looking into setting up a series of top-level visits to Beijing by top officials in the coming months
New evidence in special counsel probe may undercut Trump’s claim documents he took were automatically declassified
A French court of appeals confirmed former President Nicolas Sarkozy's three-year jail term for corruption and influence peddling
Debt Ceiling Crises Have Unleashed Political Chaos
Weibao Wang, a former software engineer at Apple, was charged with stealing trade secrets related to autonomous systems, including self-driving cars
Mobile phone giant Vodafone to cut 11,000 jobs globally over three years as new boss says its performance not good enough
Elon Musk compares George Soros to Magneto, the supervillain from the Marvel Comics series.
Warren Buffett Sells TSMC Shares Over Concerns About Taiwan's Stability
New Study Finds That Secondary Bacterial Pneumonia Is a Major Cause of Death in COVID-19 Patients Who Require Ventilator Assistance
The official tapes of Trump's deposition in the E. Jean Carroll battery (rape) and defamation case have been released.
King Charles III being crowned.
Newly released video of Donald Trump’s rape trial deposition:
Video: Ukraine MP Punches Russian Representative At Global Meet
El Paso mayor has declared a state of emergency
Russia accused Ukraine of attacking the Kremlin with drones in an attempt to kill Putin
Dutch court orders man who fathered 550 kids to stop donating sperm
Kim Kardashian Lookalike Christina Ashten Dies Of Cardiac Arrest, Hours After Plastic Surgery
Samsung has banned employees from using generative AI services such as ChatGPT
'Godfather Of AI' Geoffrey Hinton Quits Google To Warn Of The Tech's Dangers
A Real woman
Vermont Man Charged with Stalking After Secretly Tracking Woman with Apple AirTag
Elon Musk Statements About Tesla Autopilot Could Be 'Deepfakes,' Lawyers Claim. Judge Evette Pennypacker Does Not Understand How Far and Advanced This Technology Became
Ukraine More Prepared for Counterattack as Reinforcements Arrive
Tucker Carlson is back, soon!
×